Tips On Gaining Control Of Your Retirement Investments

For ultimate flexibility when planning for your retirement future, why not consider a self directed IRA LLC?

You can make all the decisions associated with your investments and retirement plan yourself when thinking about this form of individual retirement account, commonly known as the IRA. This is an exciting and potentially lucrative way for you to take control over your retirement accounts. These highly flexible options can be used for a wide range of potential investments, including real estate purchases (domestic or international), private equity, partnerships, franchises, mortgages, small businesses, tax liens and so on. In truth, there is an almost unlimited array of options available to you with a self-directed IRA.

If you have a Roth IRA, traditional IRA, 401(k), 403 (b) or other plan, so long as it is a qualified retirement account it can be rolled into a self-directed IRA. The funds from your old accounts are then rolled over into the new plan, which then purchases shares of a custom limited liability company (LLC). This process allows you to gain complete control over your retirement account investments — without incurring penalties, transaction fees or early distribution taxes.

If you engage in this type of creative formatting, the potentially punitive asset-based and transactional fees that are associated with self directed IRA custodians can be avoided, and this can add up to hundreds or thousands of dollars in a given year. Not only that, but you will also be better positioned to take advantage of time-sensitive investment opportunities, such as foreclosure auctions. There are no potentially troublesome restrictions that could hinder you, from a time or access consideration, when trying to gain custodial approval and as such, the self-directed IRA LLC options are popular.

Normally, a custodian must be appointed to oversee all IRA matters.

If a rental property is involved, as an example, rent checks must be forwarded to the IRA custodian on a monthly basis. From time to time, repairs would be necessary, but the custodian must issue approval before you can move forward. Each time the custodian gets involved, you can be sure that you will be paying transaction fees. Now, in the case of a self-directed IRA, when using an LLC structure all the custodian does is to invest funds into the LLC at the outset. The LLC manager (you) then takes care of all the day-to-day needs of the account. All those rent checks are collected by you and deposited, property repairs can be handled quite simply, with any related checks issued, there and then. With a self-directed IRA LLC, you are not held hostage — you are in control.

Earlier it was pointed out that there was an almost unlimited array of investment options available to you through a self directed IRA LLC. It’s important to point out the restrictions, however. According to the Internal Revenue Service, IRS, there are only two areas that you cannot deal with when involved with self-directed IRA accounts, including collectibles and life insurance. Collectibles includes items such as jewelry or works of art. The “collectibles” category also includes certain types of gold and silver coins. The coins that are not allowed have a value which is more derived from their collectible status, than the actual gold or silver content — thus making them a collectible.

There are few better alternatives than a self-directed IRA LLC for individuals who have had enough of dealing with the stock market, or are looking for investment products with additional security. It’s a great feeling when you have every day, hands-on control over your investments and the chance to build a really diversified portfolio, when using self-directed IRA programs.